where are the "fee"based financial advisors?

Fee based and fee only are two different animals. The majority of the advisors business in a fee based model will come from investment management fees (your 1.16%), financial planning fees ($1,800/quarter) but other income will come from insurance products, non traded REITs and other commission items. Where as fee only will only come from planning and investment fees, no commissions.

As for your situation the $1800 per quarter seems pretty steep unless you are a very large account with several moving parts. Also if I had to guess the 1.16% fee is just the advisors fee on a wrap account, and unless he is picking individual stocks within your account you probably have another .8-1.2% mutual fund expenses.

The advisor may be great, but it appears that you went in thinking you were going to pay a bill and left with the kitchen sink. This is why I advise people to gain a basic understanding of how financial advisors are compensated and THEN interview several advisors.

The financial planning fees were hourly up to the point they believed they had it all figured out, then they wanted a monthly fee for handling whatever comes up in the future. Almost makes me wish for something to come up that would make the $600 a month worth spending.

Forget "fee" based financial advisors. Go to bogleheads.org. Thank me later. The end.

So if you had an account with them with 250K in it, the 1800/qtr works out to an annual rate of 2.88 percent. Add that to the other fee and you are paying 4.06 percent.

That is insane.

Usually what I see with real, independent RIAs, is perhaps a planning fee (charged only when major planning occurs), an investment advisory fee that rarely tops 1.25 percent per year, and either underlying mutual fund fees (which are baked into the product pricing) or if the account is large enough, seperate account manager fees.

Do people actually pay this much to financial advisers?

Yes and some times much more if you are using one of the big wirehouse guys.

It really depends on the amount invested, $600 per month could be a very good fee or a very bad one.

Advice, planning, management of investments.... Typically I see the wirehouse guys as less expensive

Sorry Janky I misunderstood your post. I'm in the same boat as you. However they will explain it as the 1.16% is for ongoing mgt of the investments. The $1800 would be for consultation, setting up a plan, and ongoing advice. That would be where their "CFP" comes in. I dont agree with it either.

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If I'm going to pay 1.16 percent for them to manage the investment piece of my plan, AND I'm going to pay $600 per month for them to look after all other aspects of my plan, I bettter be getting some serious white glove service. That type of ongoing planning isn't necessary unless you are a complete doofus, or, are in estate tax territory.

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I agree. Tell them to charge you 1.16% to manage the investments and pay a flat fee for the plan. You can then update it as necessary for a negotiated price. I think it is crazy to pay retainer fee for a financial plan.